SK hynix: A Semiconductor Innovator Leading the HBM Memory and AI Era

 

SK Hynix

[Posting: 2025.06.10]

SK hynix is transitioning from a conventional memory supplier to a global leader in AI memory and High Bandwidth Memory (HBM). As a key HBM supplier to NVIDIA, a pivotal player in the AI era, the company is benefiting significantly from the AI boom. SK hynix currently produces DRAM (70%) and NAND (30%), and is planning to build the Yongin Mega-FAB with a monthly capacity of 800,000 wafers, scheduled for completion in 2027, to aggressively expand market share.

Although the company posted a $5 billion operating loss in 2023, it rebounded with a record-high operating profit of $16.3 billion in 2024 thanks to strong HBM demand—placing SK hynix at the very center of the global AI trend. In data centers, a technology alliance is being formed with NVIDIA's GPUs, TSMC's advanced logic buffer dies, and SK hynix's HBM, establishing a strong foundation of trust in both technology and quality and giving SK hynix a competitive edge over its rivals.

The case of SK hynix once again proves that only companies that respond swiftly to market trends and proactively revise and execute their roadmaps can survive in today’s dynamic semiconductor industry.

SK hynix: A Semiconductor Innovator Leading the AI and HBM Memory Era

📌 Company Overview

SK hynix, founded in 1949 and now part of the SK Group (since 2012), is the world’s 2nd largest DRAM and 3rd largest NAND flash memory manufacturer. With a sharp focus on high-performance memory for AI data centers (HBM) and enterprise eSSDs, SK hynix is competing closely with Samsung and Micron in the global memory market.

  • Headquarters: Icheon, South Korea

  • Founded: 1949 (joined SK Group in 2012)

  • Key Products: DRAM, NAND Flash, HBM, eSSD, CIS

  • Major Applications: AI servers, data centers, mobile, PC, automotive

  • Key Customers: NVIDIA, Google, AWS

  • Major M&A: Acquired LG Semiconductor (1999), Intel NAND Business ($9B, 2020)

💹 5-Year Financial Performance (2020–2024)

YearRevenue ($B)Operating Profit ($B)Net Profit ($B)
202022.153.473.33
202129.868.616.67
202230.974.721.53
202322.78-5.35-6.32
202445.9916.3013.75

📈 2024 Performance Drivers:

  • Surging demand for HBM3/HBM3E

  • AI and high-performance computing (HPC) boom

  • Strong sales of DDR5 and eSSD for data centers

🏭 SK hynix Fab Capacity & Technology Leadership

📍 Yongin Mega-Fab (Planned)

  • Target Capacity: 800,000 WSPM (Wafer Starts Per Month)

  • Completion goal: Post-2027

  • Purpose: State-of-the-art EUV-based memory campus

📍 Existing Fabs

  • Icheon (M10, M14, M16): DRAM-focused production

  • Cheongju (M15, M15X): NAND and HBM packaging

  • Wuxi, China: DRAM production (~170K WSPM including HC2)

📍 HBM Packaging Capacity

  • M10F (Icheon): 130K → 170K units/month by 2025

  • M15X (Cheongju): Expected operational by Q4 2025

🧪 Product Portfolio & Application Breakdown

ProductKey VariantsRevenue ShareKey Applications
DRAMDDR5, LPDDR5, HBM3/E~70%AI, server, mobile
NANDeSSD, Client SSD, UFS, eMMC~30%Cloud, storage devices
CIS/Logic ICCMOS sensorsMinimalMobile, IoT

▶ As of 2024, HBM accounts for ~40% of DRAM revenue, driven by AI demand.

🆚 Competitive Landscape

CategorySK hynixSamsung ElectronicsMicron
DRAM Share28–30%40%+~25%
NAND Share~15%~33%~10–11%
HBM StrategyExpanding HBM3EHBM3 mass productionDeveloping HBM3

💰 Employee Compensation & Incentives

  • ‘Self-Design’ salary structure: Employees customize a portion of their pay

  • Performance-based bonus: 60–110% of contract salary depending on results

  • Average compensation is among the highest in the Korean semiconductor industry (exact figures not disclosed)

✅ Conclusion

SK hynix is transforming from a conventional memory manufacturer into a global leader in AI memory and HBM technologies. Through internal mega-fab expansion, packaging innovation, and the Intel NAND acquisition, SK hynix is strengthening its position as a next-generation semiconductor platform provider—rivaling even TSMC in future scope.

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